The CEO of Mercedes-Benz connected Thursday signaled the institution plans to put much successful the U.S. successful the coming years and besides discussed however tariffs could interaction the automaker's business.
Mercedes-Benz CEO Ola Källenius said connected a telephone with reporters aft the institution announced its quarterly net results that it has "been operating successful the United States for much than 120 years" and has "invested tens of billions of dollars into the United States."
"We person 2 ample operations connected the passenger car side, 1 successful Alabama and 1 successful South Carolina," Källenius said. "Directly, we employment much than 11,000 radical successful the United States. If you would number successful each the suppliers and the ones that benignant of are babelike connected those last assembly jobs, the accustomed calculation is astir 1-to-10, truthful different 100,000 jobs are associated with those plants. Our trader partners, beardown backstage investors astir the country, employment 28,000 radical and past again, they person a residual effect. "
"The respective 100 1000 jobs, taxation revenue, etc. is the Mercedes-Benz footprint successful the U.S.," helium explained. "What's the constituent I americium making? The constituent is we're besides an American company. Yes, we person our office successful Germany and our European origins, but we consciousness American."
TRUMP SAYS HE WILL INTRODUCE 25% TARIFFS ON AUTOS, PHARMACEUTICALS AND CHIPS
Källenius noted that Mercedes-Benz has probe and improvement activities successful Silicon Valley arsenic good arsenic a beingness successful Michigan. He besides indicated that the institution plans to summation its concern successful the U.S. to grow that footprint going forward.
"What's the roadworthy ahead? We are prepared to proceed to put billions and we privation to turn our footprint successful the United States. We are committed," helium said. "A small known information — we are 1 of the major industrial exporters retired of the United States. Two-thirds of the vehicles that we marque successful our Tuscaloosa works really spell retired into the world, a important portion of them evidently to Europe."
STARBUCKS, MERCEDES TEAM UP IN EV CHARGING NETWORK EXPANSION
Given Mercedes-Benz's planetary presence, Källenius said that changes successful tariffs oregon different aspects of commercialized argumentation could interaction its concern decisions implicit the long-term. President Donald Trump signaled Wednesday that helium is readying to enforce 25% tariffs connected imported automobiles.
"So shifts successful commercialized argumentation successful either direction, of course, is precise important to us," Källenius explained. "When we marque concern decisions astir caller models, arsenic you rightly constituent out, you cannot determination a works implicit the play from 1 continent to another. Those are longer-term commitments, it takes 2 to three, possibly adjacent 4 years to marque those types of adjustments. And our proviso web virtually includes each 5 continents of the world, truthful it's very, precise sophisticated. It is much than a proviso chain, I would telephone it much of a proviso network."
FORD CEO SAYS TARIFFS COULD 'BLOW A HOLE' IN US AUTO INDUSTRY
Källenius besides said that "trade argumentation tin impact our concern model" and that portion policymakers volition yet find what comes of commercialized negotiations, a reciprocal determination to little tariffs oregon adjacent nary tariffs betwixt the U.S. and the European Union (EU) would spur investment.
"In the lawsuit of the EU, really the tariff is larger going into the EU than into the United States astatine the moment, and idiosyncratic mentioned wherefore not instrumentality it down to zero-zero and marque the playing tract level and possibly spur growth, which would promote companies similar america to put adjacent more," helium explained. "If they travel up with solutions similar that, that would, of course, beryllium fantastic."
"I'm not going to speculate connected what the effect volition beryllium of the negotiation. All I tin accidental is Mercedes-Benz is committed to the United States," helium added.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
"We person to nutrient affirmative currency flows to substance our investments. And fiscal spot equals innovation strength, equals instrumentality to the shareholder," Källenius said. "We're precise mindful of things that could negatively power our concern exemplary and trim our currency flow. So if we're operating successful an situation arsenic a beardown subordinate of the U.S. concern family, we anticipation that volition beryllium taken into account, and determination is thing stopping america from upping the ante and concern much successful the United States."
English (US) ·